Yahoo Finance Kforce Inc. (NASDAQ:KFRC) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders might have noticed that Kforce Inc. (NASDAQ:KFRC) filed its quarterly result this time last week. The early response was not positive, with shares down 2.0% to US$62.78 in the past week. Kforce reported in line with analyst predictions, delivering revenues of US$352m and statutory earnings per share of US$0.58, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kforce after the latest results.
Check out our latest analysis for Kforce
After the latest results, the consensus from Kforce's five analysts is for revenues of US$1.44b in 2024, which would reflect a perceptible 2.5% decline in revenue compared to the last year of performance. Statutory per-share earnings are expected to be US$2.99, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.46b and earnings per share (EPS) of US$3.13 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$70.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kforce at US$71.00 per share, while the most bearish prices it at US$68.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kforce's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.3% annualised decline to the end of 2024. That is a notable change from historical growth of 4.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.6% per year. It's pretty clear that Kforce's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kforce. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$70.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Kforce analysts - going out to 2026, and you can see them free on our platform here.
You can also see whether Kforce is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
